SCMAP Perspective is our fortnightly column on PortCalls, tackling the latest developments in the supply chain industry, as well as updates from within SCMAP. On this column, Henrik Batallones explores recent moves to boost the Philippines’ halal capabilities, and looks at why it is more important for supply chain players to gear up for halal logistics.
Revisiting halal logistics
Here’s news that went past me last year: the Department of Trade and Industry has gone all in on promoting halal industries in the Philippines.
Last January, the Philippine Halal Development Strategic Plan was unveiled, setting out plans to attract a further PHP 230 billion in investments in the sector and position the country as a major halal player, particularly in food processing. Last month, the next step was taken: the establishment of the National Halal Industry and Trade Office, who will coordinate all development efforts and initiatives, particularly in simplifying halal standards and improving access to certifications for MSMEs.
This is a significant move to allow the country to better tap opportunities from the growing halal sector. Key to this is the recognition that halal products and services are not exclusively for Muslims. Indeed, efforts have been underway globally in the past few years to promote halal as a mark of cleanliness and safety, and non-Muslim customers are turning to these products for various reasons as well. It’s very likely you have consumed halal-certified products without knowing it.
The government also cites the increasing popularity of the Philippines among Islamic travelers, and the resulting increase in the number of halal-certified accommodations and restaurants. There is also the growing export market to countries with a large Muslim population like Malaysia, Kuwait, Qatar and the United Arab Emirates.
The logistics sector should be ready as these developments continue to unfold. The steady increase in demand for halal products would mean an increased demand for halal logistics. The transport of these goods is critical in ensuring that they remain halal from source to store to customer.
I have written about this back in 2018, and seven years later the facts remain relevant: transitioning to halal logistics is not difficult and costly. Two aspects are key. The first is ensuring that halal products are stored properly, and separated from “haram” or “non-permissible” products – so, for example, halal-certified food should never be in the same space as pork products. Guaranteeing this is as easy as putting them in separate containers.
The second is improving trackability and traceability, so all concerned stakeholders can see the status of the product, particularly whether it is still “halal” and therefore fit for consumption for Muslims. Of course, we have made many strides in these tools and technologies over the past seven years, to the point that ensuring the location and condition of a product – any product – has been the base standard. This should be easy to adapt to the needs of halal logistics.
But I suppose there is a third aspect: ensuring that logistics workers are aware of these requirements and make the effort to ensure that halal goods remain halal. You can invest in better tracking and better separation, but if, say, in the cross-docking process a halal product is put side-by-side with a pork product, then it’s all for naught.
This is why I am encouraged by the government going further all in on the halal industries. Capacity-building is important to make sure that our aims are truly realized rather than just be window-dressing, that we can truly serve Muslim consumers with halal products with integrity and reliability. For us in the logistics sector, this means upskilling our warehouse personnel on the importance and requirements of halal. For the general public, it’s breaking the notion that halal products are only for Muslims. I hope the newly-established NHITO, alongside other stakeholders, can also focus on educating those across the supply chain that this is important not just for a certain demographic, but for all of us – and, to drive the point home, profitable for our businesses as well.